Droit
BUSINESS ENTITY / ADVANTAGES / DISADVANTAGES
|Proprietorships ~ |ADVANTAGES |DISADVANTAGES |
| | | |
|Individually owned |Control (direct) |unlimited liability |
|No separate legal status apart from their |Simplicity ~ easy to operate/flexible |management ~ professional managers are |
|owner |Lower expense ~ informal accounting and no |rarely hired; no one else to carry on |
| |SEC req’s; fewer and simpler legal issues |business after death of the owner |
| |Taxes ~ business is not taxed separately; |Transferability ~ ownership cannot be |
| |income and expenses pass straight to the |readily sold |
| |owner | |
|Partnerships ~ |Control ~ simply dispersed among partners |unlimited liability |
|Association of 2 or more |by agreement; direct between ownership and |transferability ~ a partner cannot sell |
|Carry on business |control |his/her ownership interest |
|For profit |Simplicity ~ lots of flexibility | |
|As co-owners |Less expensive to operate than a | |
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